Cryptocurrency NewsTop News

Virgin Atlantic says still talking with UK government on coronavirus funds

imageCoronavirus19 hours ago (Apr 25, 2020 09:40PM ET)

(C) Reuters. FILE PHOTO: A Virgin Atlantic Airbus A330 plane arrives at Liverpool John Lennon Airport in Liverpool northern England.

By Shubham Kalia

(Reuters) – Virgin Atlantic is still talking with the British government about a bailout package to cope with the devastating effects of the coronavirus outbreak on travel as well as focusing on private sector funding, a company spokeswoman told Reuters.

The comments came after the Sunday Telegraph reported https://www.telegraph.co.uk/business/2020/04/25/branson-races-find-virgin-atlantic-buyer that founder Richard Branson was seeking a buyer for the airline and had set a May-end deadline for a sale, and that talks with the government for a 500 million pound ($618.35 million) bailout package had been “effectively shelved.”

The spokeswoman said it was incorrect to say that the company has set a deadline to seek a buyer.

“Because of significant costs to our business caused by unprecedented market conditions which the COVID-19 crisis has brought with it, we are exploring all available options to obtain additional external funding,” she said.

She said talks with the British government were “ongoing and constructive.”

Virgin Atlantic is based in Britain and is 51% owned by Branson’s Virgin group and 49% owned by U.S. airline Delta (N:DAL).

The pandemic has lead to a massive fall in global air travel demand. Australia’s second-biggest airline Virgin Australia Holdings (AX:VAH), which is a part of Virgin Group, has already succumbed to third-party led restructuring that could lead to a sale.

Earlier in the week, Branson had said that Virgin Atlantic would only survive the outbreak if it gets financial support from the UK government.

“This would be in the form of a commercial loan – it wouldn’t be free money and the airline would pay it back,” Branson said in a blog post to staff last Monday.

In its report, the Sunday Telegraph quoted sources as saying that Lansdowne Partners, Singapore sovereign wealth fund Temasek and Northill Capital were among the investors interested in rescuing the airline. U.S. based Centerbridge Partners and Cerberus Capital Management were also in discussions, it said.

The interested companies can offer to structure a rescue by injecting debt, equity or convertible loans, which could leave Branson with no residual stake in the airline, according to the sources cited in the report.

The deal options also include putting the company into administration, it added.

Virgin Atlantic says still talking with UK government on coronavirus funds

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Close
Close
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!